The Rubiix 2018-9 Budget Report: Personal Taxation

In the budget the government has announced staged tax relief for low and middle income earners. It will see a new non-refundable low and middle income tax offset from 2018-19, designed to provide tax relief of up to $530. Below is a tax rate table showing the thresholds for the next few years.

Increased compliance activities: individuals and their tax agents
The Government will provide $130.8 million to the ATO from 1 July 2018 to increase compliance activities targeting individuals and their tax agents. This measure stems from the ATO identifying a number of significant compliance issues for individual taxpayers which results in a significant loss of revenue for the Government each year.

Taxation of income for high profile individuals
The Government will ensure that high profile individuals will no longer be able to take advantage of lower tax rates by licensing their fame or image to another entity.

Medicare levy low-income thresholds for 2017-18
For the 2017-18 income year, the Medicare levy low-income threshold for singles will be increased to $21,980 (up from $21,655 for 2016-17). For couples with no children, the family income threshold will be increased to $37,089 (up from $36,541 for 2016-17). The additional amount of threshold for each dependent child or student will be increased to $3,406 (up from $3,356).

If you have any queries on these points further and how they may affect you, please contact our office on 03 9603 0066.

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